Some Alternative Monetary Facts

40 Pages Posted: 9 Mar 2021

See all articles by Peter Stella

Peter Stella

Central Bank Archaeology

Manmohan Singh

International Monetary Fund (IMF)

Apoorv Bhargava

International Monetary Fund (IMF)

Date Written: January 2021

Abstract

In this paper, we discuss the modern history of monetarism and its alternatives, as well as the changing empirical relationship of various measures of money and inflation. After demonstrating that previous naïve correlations between money and inflation as established in the 20th century literature have largely disappeared, we explain why this cannot be taken as support for an increased reliance on permanent monetary finance. Rather, we argue that rapid technological innovation in payments systems-both public and private-including in global pledged collateral markets, portends a declining demand for central bank liabilities.

JEL Classification: G21, G28, F33, K22, G18, G15, E50, E31, E42, E41

Suggested Citation

Stella, Peter and Singh, Manmohan and Bhargava, Apoorv, Some Alternative Monetary Facts (January 2021). IMF Working Paper No. 2021/006, Available at SSRN: https://ssrn.com/abstract=3799598

Peter Stella (Contact Author)

Central Bank Archaeology ( email )

Venice, FL
United States

Manmohan Singh

International Monetary Fund (IMF) ( email )

700 19th Street NW
Washington, DC 20431
United States

Apoorv Bhargava

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

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